Love Your Investment

Alternative to going all in on one investment.

Spread the Investment
Love Around

At the end of every year, you likely have found yourself wondering why you invested in certain stocks and failed to invest in others. The stock market's biggest consistency is that it is inconsistent. Therefore it can cause everyone a lot of stress. However, don't fret too much. Spreading your investments around is still the best strategy.

Anyone with a diversified portfolio will likely endure some stocks that do well, some that don't, and some that are pretty much flatliners. So why not just get rid of those poor performing stocks and go all in on the big winners? Because, as The New York Times explains, it's not that simple. As we said, the market is really good at being all over the map. There is no model for picking stock immediately before it explodes and showers you with heaps of money. Sorry. So if there's no real way to predict which investment will do the best, you'll always be better off diversifying.

Of course diversifying will probably leave you with some investments that you regret. You could try rebalancing, but that isn't likely to make you any more happy. "You’re selling at least some of an investment that’s done well and buying more of one that hasn’t," reports the Times. "This unnerves people. They don’t see it as buying something on sale but as trading a winner for a loser."

Think about your diversified stock in the longterm; because that's the right play. Yes, your coworker nailed the big winner of last year. But there's no way to depend on that from year-to-year. Instead, you should be spreading your investments out so that — as the decades go by — you're keeping your head above water.